Rico Auto Industries Ltd (BSE:520008, NSE:RICOAUTO) had hit a recent high of Rs 81 ahead of Board meeting on May 25 to finalise the FY18 results. In noon trade, the scrip had fallen back to Rs77.90 after hitting a high of Rsw 79.35.
In Q3FY18, the company reported 44.64% growth in net profit at Rs 13.22 cr while sales rose 26.13% to Rs 303.38 cr. In FY 17, the company had reported 7% growth in sales at Rs 1092.2 cr and EBIDTA rose 17.1% to Rs 126.6 cr and net profit rose 63.6% to Rs 48,6 cr.
Healthy growth in automotive sector and GDP growth should augur well for Rico Auto in FY18 also. A few months ago, the company had entered into a 50:50 Joint Venture with Singapore’s Fairwood PTE to manufacture autonomous electric vehicles to be run on a dedicated track.
The scrip has gained 1800% in less than five years giving good return for investors. Diversification strategy and having large automobile players such as Honda, Toyota, Maruti Suzuki, Volkswagon, Benteley has helped in companys’ growth.
In the last few years, the comapny had invested in new capacity addition in Pathredi, Bhiwandi (Rajasthan), Bawal and Chennai apart from getting new customers such as Bentley, PSA.